Essays on Identifying and Evaluating Market Opportunities Case Study

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The paper "Identifying and Evaluating Market Opportunities" is a wonderful example of a Marketing Case Study. Of late, cycling has become more popular not only in Australia but also globally. For instance, there has been a 28 percent increase in the number of people cycling to work worldwide since 2006 (Vicroads Bicycle Programs Section, 2009). In Australia, recent research conducted in Melbourne indicated an annual increase of 10% in the number of cycles on major routes between 2007 and 2011. There has also been an increase in bicycle sales with 2011 being the 11th year in which Bicycle sales in Australia outstripped cars by exceeding one million.

Statistics show that bicycle sales reached 1.3 million bicycles in 2010 (Amy Gillet Foundation). However, despite the increase in the number of customers using bicycles in Australia for various reasons, the market potential remains greatly underutilized. As such, the company’ s like Super Cycles stand to make huge profits if they can successfully identify and start serving the markets which still remain unutilized to date. This paper explores and identifies such markets with the aim of enabling the company to venture into them and hence improve its financial performance.

In addition, the paper explains how SWOT and Porter's five forces model could be used in identifying the best marketing opportunities for the company. Finally, the paper recommends three marketing opportunities in the industry that the company should utilize in its bid to improve profitability. Potential market opportunities The following market opportunities in the industry have been identified based on the nature and frequency of riding that the riders engage in. The riders for the pleasure market The market represents the greatest part of the entire market and makes about 50% of the market.

Customers in this market generally ride for pleasure and only when conditions suit them (Ryan, 2010). The customers are however risk-averse and mostly ride off-road as well as on quieter roads. Their greatest concerns are riding security and are very conscious of traffic rules. Since the majority are them are families and own cars, they only tend to ride during the warm months since to them cycling is a pleasure and not a form of transport.

Although most bicycle sellers tend to serve this market, supercycles have the potential of expanding their market shares by coming up with a new brand that will address the market's security concerns. The company should also engage in vigorous marketing campaigns that will see a substantial part of this market buy supercycle by adopting riding not only for leisure but also for health purposes. By making our bikes supplied to this market safer and more comfortable, the supercycle will make its bicycles to be the ultimate bicycles of choice by this market hence greatly boosting our sales to this market. The cycling life market The market contributes about 15 percent of the entire market and consists of those who are regular riders and to them, cycling is a way of life (Vicroads Bicycle Programs Section (2009).

They ride in all types of roads and conditions. The market is composed of those who earn relatively low levels of income and hence to them pricing of bicycles is of major concern. As such, there exists an opportunity for Super cycles to introduce a new brand specifically meant for this market.

By introducing a relatively cheaper but safer brand for the segment, most customers in this segment are likely to always opt for our company’ s products.

References

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John, T2005, Fundamental principles of marketing, London, Rutledge.

Chiu, M2009, Recreational Mountain biking in Australia since 2000, University of Tasmania, Australia.

Ryan, K2010, Sports biking in Australia: A summary of current trends and future opportunities, Sports and Recreation Journal, vol.25, no.2, pp. 19-25.

Vicroads Bicycle Programs Section, 2009, Draft Australia Cycling: Bicycle ownership, use and demographics, Australian Bicycle Council.

Amy Gillet Foundation, Annual Report 2009/10.

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